Novacyt makes cash offer for fellow UK diagnostics company as Covid-19 testing revenue dwindles

No­va­cyt made a cash of­fer for mol­e­c­u­lar di­ag­nos­tics and screen­ing so­lu­tions com­pa­ny Your­gene Health as it ad­justs from a ma­jor drop in rev­enue due to de­clin­ing de­mand for Covid-19 di­ag­nos­tics.

The rec­om­mend­ed of­fer for Your­gene of about £16.7 mil­lion has been agreed up­on by both boards and is ex­pect­ed to close dur­ing the third quar­ter, the com­pa­nies said Mon­day.

No­va­cyt, a UK-based di­ag­nos­tics com­pa­ny, is look­ing to ex­pand in­to oth­er test­ing ar­eas as its rev­enue re­turns to pre-pan­dem­ic lev­els, go­ing from £92.6 mil­lion in fis­cal 2021 to £21.0 mil­lion in fis­cal 2022. To move be­yond the pan­dem­ic, the com­pa­ny re­cent­ly beefed up its re­search-use-on­ly tests for mon­i­tor­ing of mpox and oth­er in­fec­tious dis­eases, added a third-par­ty dis­tri­b­u­tion agree­ment for in vit­ro di­ag­nos­tic as­says, and teamed up with a non-gov­ern­men­tal or­ga­ni­za­tion to help de­tect dengue, Zi­ka and oth­er virus­es.

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